I declared personal bankruptcy in 2002. I was advised by my lawyer that the only way I could get out of the $80,000 lien on my personal bank account was to declare a bankruptcy. I got into the debt because of the infidelity of a former business partner and my own ignorance and blind trust. He might be defaulted his own part of the credit and the entire burden of the loan fell on me. This occurred because I did not read through the papers years earlier when he handed the agreement over to me to sign because I trusted his judgment.
I suffered lots of shame and humiliation for declaring bankruptcy. Although I tried my best to forget about the entire situation but this proved difficult especially when I have something to do with the bank. Robin Hardy of The Moosey Group Inc described it correctly. She said the main emotion felt at such point in time is failure. The feeling of failure comes from the way the creditors would treat you in such condition. They will make you feel like a failure, a looser and a nonentity.
However, it is actually possible to stay out of the trouble of bankruptcy before it comes hard on you. It is of course better to prevent a thing than to stop it. Here are some takes on preventing bankruptcy.
- According to Edward E. Neiger, founder of partner of Neiger LLP, do not bite off more than you can chew. When making decisions, do not just consider things that will make you happy, think of things that would benefit your business greatly.
- He also suggests that you should pay off your bills following each purchase. You can achieve this by setting aside the appropriate amount of the purchase safely and pay the bills full each month.
- Diane Darling, an author and public speaker, suggests going for the oxygen mask. This is usually the instruction given by flight attendants at the onset of each flight. It is also important here.
- Robin advised that-try not to allow yourself to be the guilt and should not take bankruptcy personal if you have to file for it. The truth is that you should not go through the bankruptcy but avoid yourself for bankruptcies neither you nor the business. You can turn a new leave, reinvent and move forward.
According to Darling, you can make things easier for yourself by getting housemates and bringing lunch rather than eating out.
According to hardy, it is important to understand that you did not fail because of the bankruptcy and therefore you need to move ahead despite the condition.
Avoid the Abyss
According to Attorney Edward E. Neiger, founder of partner of Neiger LLP, dishonesty of the significant other is the primary reason why women declare bankruptcy. He also pointed out that women often file for personal bankruptcy after a divorce if their current job is not able to uphold their debt. He however pointed out that he has not seen much difference between men and women in business in terms of the underlining purposes of business bankruptcy.
Darling who was bankrupt years ago now has two housemates, has paid off all her debts and is now saving for a down payment. Her business is flourishing and according to her, she can achieve more by putting in more energy into the business.
Robin Hardy is now following her passion. She is a sales trainer, motivational expert and business consultant. I have also waded through my bankruptcy and came out successful and in the end of the day I believe in myself.
Facing this kind of dilemma is really a mental torture and great shame, but there is nothing we can do but to face it, accept it, the sooner you do it, the sooner you’ll find a solution This experience will teach us to become wiser on our finances.
If you’re an entrepreneur, it’s weird to have financial troubles because most of us have done so well in our previous endeavors that we’re entirely dumbfounded that our own productions aren’t faring as well.